Housing loans are long-term consumer loans that can be used with maturities of up to 10 years, and it is quite understandable that there are changes in the economy, and thus in bank loan interest rates. The fact that interest rates are as low as they are high can cause various problems.
Therefore, if the current interest rate in the economy is lower than the interest rate paid by the consumer for the mortgage loan, this should be corrected, otherwise there will be various problems for the consumer and the country’s economy. In this context, it will be useful to mention the important tricks in the housing loan transfer process from the bank and how the transfer takes place.
Housing Loan Transfer and Configuration Is The Same?
Transferring or structuring the mortgage loan has the same meaning as a result The only difference is that the transfer is subject to structuring after the loan is transferred to a different bank. Whether the mortgage loan is transferred to another bank or restructured by contacting the existing bank, a new payment plan will be created in any case and the consumer will have to pay for a structured payment plan.
What is a mortgage loan transfer?
The process of transferring the loan debt, which continues to be paid with the existing interest rates, to a different bank with lower interest rates, the payment of the old loan debt by the understood bank, and the allocation of credit with a lower interest rate for this payment is called credit transfer.
Credit transfer or structuring may be due to the fact that credit can be used with lower interest rates, and that the existing credit debt cannot be paid. In other words, when the consumer understands that he cannot pay his debt with the existing interest rates, he may meet with his bank either to establish a repayment plan for a longer term or to create a new payment plan with a lower interest rate.
Configuration or Transfer or More Profitable?
Although configuration and transfer ultimately mean the same, an alternative will always be more profitable for the consumer in some cases. The consumer, who declares that he wants to transfer his current debt to a different bank, may face a new offer with lower interest rates since it means a loss of customer for the bank, if this is the case, it is more profitable to request a configuration with the newly proposed interest rate.
However, it will be logical for the consumer to transfer his debt within a short period of time, if he informs the bank that he wants to be transferred but does not encounter a lower interest rate offer. Therefore, which one is profitable will be revealed after notification to the bank about the transfer.
Regardless of the transfer or configuration, an early payment penalty will be allocated by the bank on the grounds that a previously created payment plan has not been followed and the debt has been closed before the due date. This penalty is legal and is applied by the bank at 1% for loans less than 36 months and 2% for loans longer than 36 months. These rates are the upper limits of the penalty that can be imposed, it is illegal to exceed these limits.
Costs to be Covered by Transfer
Since the mortgage loan transfer will take place and the payment plan will be reconstructed, the procedure is applied as if you were applying for the loan for the first time. Therefore, consumers come to the home again, and the home is valued. This is the first cost to be incurred. In addition, mortgage costs will arise due to the change of mortgage previously put into the dwelling.
These costs are often unobtrusive next to the profit obtained due to the transfer, so it is not necessary in most cases to consider it.
How to Transfer Housing Loan?
There is a procedure to be followed for the transfer of housing loans. After this procedure, the consumer loan debt is transferred to the new bank and payments are made to this bank.
- The housing loan transfer to any bank will be made to this bank, and a mortgage loan application is made by submitting an income certificate, photocopy of title, ID. The application made is evaluated in a short time and it becomes clear whether the loan will be issued for the relevant amount.
- The bank, from which the transfer request is made, requests a closing letter from the bank to which the debt will be transferred after the loan application is answered. The content of this article shows how much the consumer pays for the loan debt and the mortgage will be removed.
- The bank supplying the closing letter sends the expert to the consumer’s home on loan and calculates the appraisal value. A repayment plan is created over the appraisal value.
- After the expert report is examined by the bank, the loan allocation process is completed, the payment to be made for the consumer to close the pipe is made directly from the bank to the bank, and the payment is made to the new bank.
Selling of Residential Property with Credit Debt
In case the owned house is desired to be sold, the sale can be realized if the consumer to know the situation. Just like in the transfer transactions, a closing letter is provided from the bank, it is given to the consumer who wants to buy the house, and it is registered how much the bank will remove the mortgage on the house.
The consumer who will buy the house goes to the bank and takes the deed of the house along with the debt, after these two transactions, he makes the payment in one go, and if necessary, makes the additional owner and makes the new owner of the house.
Contrary to the estimate, the purchase of residences whose credit debt continues is not insecure or risky. In fact, since the bank is involved in most of the transactions, procedures can be completed much more safely and quickly. However, experts recommend that you always review the title deed, confirm that the correct deed and housing sales have been carried out, and work with the expert if possible.